Special characters and Transformation

Hello,

I have two questions:

1) If I have an XML input file like this:

<root>
	<Text>
		<junk>xxx</junk>
		<tag>Als die ersten St&#228;dte zu einer Gr&#246;&#223;e heranwuchsen</tag>
		<junk2>xxx</junk2>
	</Text>
</root>

I would like to skip the <junk> only transform the <tag>; however the output
shall still have the special character as it is there in the input file.
Unfortunately the special characters get translated into the proper German
characters.

That is:
<root>
	<Text>
		<tag>Als die ersten Stddte zu einer Grv_e heranwuchsen</tag>
	</Text>
</root>


This is my XSLT:

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
	<xsl:output method="text" version="1.0" encoding="UTF-8" indent="yes"/>
	<xsl:template match="/">
		<xsl:element name="root">
			<xsl:for-each select="Text">
				<xsl:element name="Text">
					<xsl:element name="tag">
						<xsl:value-of select="tag"/>
					</xsl:element>
				</xsl:element>
			</xsl:for-each>
		</xsl:element>
	</xsl:template>
</xsl:stylesheet>

How can I avoid it?

2) If I had a namespace on the root:

<root xmlns="http://www.fo.com">
	<Text>
		<junk>xxx</junk>
		<tag>Als die ersten St&#228;dte zu einer Gr&#246;&#223;e heranwuchsen</tag>
		<junk2>xxx</junk2>
	</Text>
</root>

The way I do it (not shown here) is that I get the namespace behind each
single tag.  But how do I modify my XSL so that the output is like this:

<root xmlns="http://www.fo.com">
	<Text>
		<tag>Als die ersten St&#228;dte zu einer Gr&#246;&#223;e heranwuchsen
</tag>
	</Text>
</root>

Many Thanks for help,
Houman